VAT - Existing rull residency building being demolished and replaced with new build. Planning permission holiday home with 12 months occupancy except for 28 night January only restriction. Can new build be zero rated as has been the case with recent properties that have been built.
Margaret Grimmett
Replies (2)
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Paul....
....thanks for the reply. New building is not for sale, but for personal use. Does "construction services" include labour and building materials at zero rating?
Sale will be Standard Rated
As there is a restriction on the occupancy of the building the sale cannot be zero-rated. If it is sold when less than 3 years old the sale will be standard-rated. If it is sold when more than 3 years old then it will be exempt.
However, as the building is "designed as" a dwelling any construction services you purchase during construction should be zero-rated.
Regards
Paul Taylor
VATease - VAT Advisors